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DBS Adjusts Stock Positions from Underweight to Neutral, Upbeat About US Techs
Recommend 16 Positive 16 Negative 7 |
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Entering 2025, the global geopolitical and economic landscape remains complex and delicate, especially with the recently concluded US presidential election that will have a profound impact on global markets and risk assets, said Hou Wey Fook, DBS Bank's Chief Investment Officer. With the Republican Party winning the Senate and the House of Representatives, the Donald Trump administration now has a clear mandate and significant power to push any policy agenda in Congress, whether it concerns tax cuts, climate change, or border security. As a result, the market's widespread expectation of an impending economic recession and significant interest rate cuts by the Fed is no longer valid. Instead, as Trump aims to fulfill his policy promises of tax cuts and expansionary fiscal spending, the US macroeconomic momentum is anticipated to enter a high-speed development phase. Despite market optimism on growth, uncertainties still abound with Trump 2.0, while the market will focus on the fiscal sustainability of his policy plans and the potential for a trade war ignited by his proposed tariff hikes. In response to Trump's expansionary policies, DBS adjusted its stock positions from Underweight to Neutral and continued to recommend adding US stock holdings. In terms of sectors, the team remained optimistic about US tech stocks due to their long-term growth potential and a beta value 1.4 times higher than the global stock market over the past decade. Investors can expect substantial returns with the new government's tax cuts and deregulation policies. AAStocks Financial News |
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